Can I Remortgage To Pay For Land In France?

retiresoon

I am retiring next summer 2008, but daughter and son have important exams so don't want to disturb them this year.
I have found my ideal land abroad and want to buy it, as land values in the area are rising.
I need £50,000 to pay for the land by January 08.
Can I ask my mortgage company if I can add this to the mortgage?
It is an interest-only mortgage, three and a half years old, payments always paid on time.
My income is £31,000.
Also, do I ask direct, or go through a broker?
Would be very grateful for your advice.

Mortgagehero

Need more infomation to help you. You say you are retireing next year, how will you keep up the repayments? The mortgage you have at the moment is only 3.5 years into its term, how many years are remaining? It is on an interest only basis, how do you intend to repay the capital? Will your current repayment plan cover the additional £50,000 loan. How much is your current mortgage debt?

sarkin

are you sure prices are still rising? the ECB look like they are going to raise rates soon and with Spain and Ireland already starting to reverse in price I think France may head the same way

Dan_Collins_2

Sarkin sometimes you have to take a risk or pay a higher price to get what you wnt when you want. In the long term he will make money!

You can do it but Hero is correct to bring up those questions. I would maybe have a chat with a good broker to look at what it is u can do with what pros and cons!!

retiresoon

Thanks for your helpful replies, mortgagehero, sarkin and Dan.
What I failed to explain [I blame the flu] is that I plan to sell my home by next summer to fund my land purchase in France and the building of a new home.
I found the land last summer and am going through the process of purchasing it the French way, which is remarkably helpful.
If for any reason I can't fund it, or the plans are refused by the local authority, my deposit is returned.
I have till Jan. to fund the land, and then only need to provide 5% of the house price [£5.000] for the building work to begin.
I am trying to save time by doing it this way, and to avoid disturbing my children's education.
Then by the time I get to the summer and their exams are over, I can sell and go.
There are many gites which are empty over the winter, so I can stay in one and wait until my house is built.
BTW, a two bedroom bungalow in France with land costs £150,000 altogether.